The Mutual Fund Dealers Association has approved extensions to the transition periods for a couple of its rule.

The MFDA board has approved a one-year extension of the transition period for the MFDA monthly financial reporting requirement to March 2004. During this extension period, the MFDA will require members to file financial reports on a quarterly basis. However, it retains the right to require more frequent financial reporting at any time during this period if it is deemed necessary in light of a firms circumstances.

The board has also approved a one-year extension of the transition period for the implementation of automatic early warning sanctions to March 2004. Again, during this extension, the MFDA reserves the right to request financial information from a member and implement the sanctions set out under the rules.

The MFDA board had previously approved a two-year transition period for both requirements on March 16, 2001.